HOUSTON, April 25, 2012 /PRNewswire/ -- Oceaneering
International, Inc. (NYSE:OII) today reported record first quarter
earnings for the period ended March
31, 2012. On revenue of $594.9 million, Oceaneering generated net
income of $51.5 million, or
$0.47 per share. During
the corresponding period in 2011, Oceaneering reported revenue of
$470.4 million and net income of
$42.1 million, or $0.39 per share.
Summary of
Results
|
(in
thousands, except per share amounts)
|
|
|
|
Three
Months Ended
|
|
March
31
|
Dec. 31
|
|
2012
|
2011
|
2011
|
Revenue
|
$594,893
|
$470,420
|
$574,197
|
Gross
Profit
|
123,303
|
98,801
|
130,746
|
Income
from Operations
|
75,987
|
61,067
|
82,468
|
Net
Income
|
51,455
|
$42,070
|
$58,317
|
|
|
|
|
Diluted
Earnings Per Share
|
$0.47
|
$0.39
|
$0.54
|
|
Year over year, quarterly earnings per share (EPS) improved as
all business segments achieved higher operating income, led by
Remotely Operated Vehicles (ROV). Sequentially, quarterly EPS
declined, as anticipated, principally due to a reduction in
operating income from Subsea Products.
M. Kevin McEvoy, President and
Chief Executive Officer, stated, "Our EPS was up over 20% compared
to the first quarter of 2011 and our outlook for the rest of this
year remains very positive. We continue to forecast our 2012
EPS to be in the range of $2.45 to
$2.65, another record earnings year. For our services
and products, we expect continued international demand growth and a
moderate rebound in overall activity in the U.S. Gulf of Mexico (GOM).
"Year over year, quarterly ROV operating income improved on the
strength of higher demand in most areas of the world, particularly
in the GOM and off West Africa. Our ROV days on hire rose 17%
and fleet utilization increased to 79% from 71% a year ago.
During the quarter we put five new systems into service and retired
two. At the end of the quarter we had 270 vehicles in our ROV
fleet, an increase of 10 from March 2011. For the balance of
2012, we expect to place 15 to 20 more new systems into service and
retire three.
"Compared to the first quarter of 2011, Subsea Projects
operating income was higher due to the commencement of the field
support vessel services contract with BP offshore Angola and the addition of the Ocean
Patriot to our GOM vessel fleet.
"Sequentially, quarterly Subsea Products operating income
declined on lower demand for our subsea hardware and Installation
and Workover Control System (IWOCS) services, primarily due to
project timing. Our Subsea Products backlog at quarter-end
was $402 million, up from $382
million at the end of March and December of 2011.
Since the end of the quarter, we announced the award of a
large umbilical contract that added $70
million to our products backlog.
"For the second quarter of 2012, we expect improvements in
demand and operating results for all of our oilfield business
segments. We are forecasting EPS of $0.64 to $0.68.
"Our liquidity and projected cash flow provide us with ample
resources to invest in Oceaneering's growth. At the end of
the quarter our cash exceeded our debt. During the quarter we
generated EBITDA of $116 million and
for 2012 we anticipate generating at least $550 million.
We fully intend to pursue organic growth and acquisition
opportunities to expand Oceaneering's asset base and earnings
capability.
"Today we announced an increase in our regular quarterly cash
dividend to $0.18 from $0.15 per share. This underscores our
confidence in Oceaneering's financial strength and future business
prospects.
"Looking beyond 2012, our belief that the oil and gas industry
will continue to invest in deepwater projects remains
unchanged. Deepwater remains one of the best frontiers for
adding large hydrocarbon reserves with high production flow rates
at relatively low finding and development costs. With our
existing assets, we are well positioned to supply a wide range of
the services and products required to support safe deepwater
efforts of our customers."
Statements in this press release that express a belief,
expectation, or intention are forward looking. The
forward-looking statements in this press release include the
statements concerning Oceaneering's: expectation for the
balance of 2012 of placing 15 to 20 new ROVs into service and
retiring three; 2012 EPS range forecast; expectation of record
earnings in 2012 based on continued international demand growth and
a moderate rebound in overall activity in the GOM; backlog, to the
extent that backlog may be an indicator of future revenue or
profitability; expected improvements in demand and operating
results for all of its oilfield business segments for the second
quarter of 2012; second quarter 2012 forecasted EPS range;
expectation that its liquidity and projected cash flow will provide
ample resources to invest in the company's growth;
anticipated 2012 EBITDA; intent to pursue organic growth and
acquisitions to expand its asset base and earnings
capability; belief that the oil and gas industry will
continue to invest in deepwater projects; and belief that deepwater
remains one of the best frontiers for adding large hydrocarbon
reserves with high production flow rates.
These forward-looking statements are made pursuant to the
safe harbor provisions of The Private Securities Litigation Reform
Act of 1995 and are based on current information and expectations
of Oceaneering that involve a number of risks, uncertainties, and
assumptions. Among the factors that could cause the actual
results to differ materially from those indicated in the
forward-looking statements are risks and uncertainties related
to: industry conditions; prices of crude oil and natural gas;
Oceaneering's ability to obtain, and the timing of, new projects;
changes in customers' operational plans or schedules; contract
cancellations or modifications; difficulties executing under
contracts; and changes in competitive factors. Should one or
more of these risks or uncertainties materialize, or should the
assumptions underlying the forward-looking statements prove
incorrect, actual outcomes could vary materially from those
indicated. For a more complete discussion of these and other
risk factors, please see Oceaneering's annual report on Form 10-K
for the year ended December 31, 2011, filed with the
Securities and Exchange Commission.
We define EBITDA as net income plus provision for income
taxes, interest income/expense, net, and depreciation and
amortization. EBITDA is a non-GAAP financial measure.
We have included EBITDA disclosures in this press release because
EBITDA is widely used by investors for valuation and comparing our
financial performance with the performance of other companies in
our industry. Our presentation of EBITDA may not be
comparable to similarly titled measures other companies
report. Non-GAAP financial measures should be viewed in
addition to and not as an alternative for our reported operating
results or cash flow from operations or any other measure of
performance as determined in accordance with GAAP. For a
reconciliation of these EBITDA amounts to the most directly
comparable GAAP financial measures, please see the attached
schedules.
Oceaneering is a global oilfield provider of engineered services
and products, primarily to the offshore oil and gas industry, with
a focus on deepwater applications. Through the use of its
applied technology expertise, Oceaneering also serves the defense
and aerospace industries.
For further information, please contact Jack Jurkoshek, Director Investor Relations,
Oceaneering International, Inc., 11911 FM 529, Houston, Texas 77041;
Telephone 713-329‑4670;
E-Mail investorrelations@oceaneering.com. A live webcast of
the company's earnings release conference call, scheduled for
Thursday, April 26, 2012 at
11:00 a.m. Eastern, can be accessed
at www.oceaneering.com/investor-relations/.
OCEANEERING INTERNATIONAL, INC. AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
2012
|
|
Dec. 31,
2011
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
|
Current
Assets (including cash and cash equivalents of $127,492
|
|
|
|
|
|
and $106,142)
|
|
$
973,067
|
|
$
984,122
|
|
Net
Property and Equipment
|
|
948,622
|
|
893,308
|
|
Other
Assets
|
|
532,823
|
|
523,114
|
|
|
TOTAL
ASSETS
|
|
$
2,454,512
|
|
$
2,400,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities
|
|
$
525,994
|
|
$
501,375
|
|
Long-term
Debt
|
|
100,000
|
|
120,000
|
|
Other
Long-term Liabilities
|
|
216,563
|
|
221,207
|
|
Shareholders' Equity
|
|
1,611,955
|
|
1,557,962
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
2,454,512
|
|
$
2,400,544
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
Mar.
31,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
|
2012
|
|
2011
|
|
2011
|
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
Revenue
|
|
$
594,893
|
|
$
470,420
|
|
$
574,197
|
Cost of
services and products
|
|
471,590
|
|
371,619
|
|
443,451
|
Gross
Profit
|
|
123,303
|
|
98,801
|
|
130,746
|
Selling,
general and administrative expense
|
|
47,316
|
|
37,734
|
|
48,278
|
Income
from Operations
|
|
75,987
|
|
61,067
|
|
82,468
|
Interest
income
|
|
344
|
|
167
|
|
428
|
Interest
expense
|
|
(545)
|
|
(147)
|
|
(350)
|
Equity
earnings of unconsolidated affiliates, net
|
|
804
|
|
470
|
|
859
|
Other
income (expense), net
|
|
(1,473)
|
|
(141)
|
|
1,792
|
Income
before Income Taxes
|
|
75,117
|
|
61,416
|
|
85,197
|
Provision
for income taxes
|
|
23,662
|
|
19,346
|
|
26,880
|
Net
Income
|
|
$
51,455
|
|
$
42,070
|
|
$
58,317
|
|
|
|
|
|
|
|
Weighted
Average Number of Diluted Common Shares
|
|
108,761
|
|
109,002
|
|
108,671
|
Diluted
Earnings per Share
|
|
$0.47
|
|
$0.39
|
|
$0.54
|
|
|
|
|
|
|
|
The above
Condensed Consolidated Balance Sheets and Condensed Consolidated
Statements of Income should be read in conjunction with Company's
latest Annual Report on Form 10-K.
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
|
|
Mar.
31,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Remotely
Operated Vehicles
|
Revenue
|
|
$
193,971
|
|
$
164,328
|
|
$
200,681
|
|
|
Gross
Profit
|
|
$
66,392
|
|
$
55,408
|
|
$
69,298
|
|
|
Operating
income
|
|
$
56,933
|
|
$
47,406
|
|
$
59,100
|
|
|
Operating
margin
|
|
29%
|
|
29%
|
|
29%
|
|
|
Days
available
|
|
24,246
|
|
23,274
|
|
24,277
|
|
|
Utilization
|
|
79%
|
|
71%
|
|
79%
|
|
|
|
|
|
|
|
|
|
|
Subsea
Products
|
Revenue
|
|
$
172,081
|
|
$
157,318
|
|
$
196,987
|
|
|
Gross
Profit
|
|
$
46,781
|
|
$
41,787
|
|
$
53,285
|
|
|
Operating
income
|
|
$
29,510
|
|
$
27,683
|
|
$
36,743
|
|
|
Operating
margin
|
|
17%
|
|
18%
|
|
19%
|
|
|
Backlog
|
|
$
402,000
|
|
$
382,000
|
|
$
382,000
|
|
|
|
|
|
|
|
|
|
|
Subsea
Projects
|
Revenue
|
|
$
72,676
|
|
$
37,569
|
|
$
45,263
|
|
|
Gross
Profit
|
|
$
11,911
|
|
$
5,331
|
|
$
9,108
|
|
|
Operating
income
|
|
$
7,567
|
|
$
3,036
|
|
$
6,769
|
|
|
Operating
margin
|
|
10%
|
|
8%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
Asset
Integrity
|
Revenue
|
|
$
93,456
|
|
$
58,350
|
|
$
66,826
|
|
|
Gross
Profit
|
|
$
12,230
|
|
$
9,397
|
|
$
10,888
|
|
|
Operating
income
|
|
$
6,538
|
|
$
5,880
|
|
$
6,473
|
|
|
Operating
margin
|
|
7%
|
|
10%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
Advanced
Technologies
|
Revenue
|
|
$
62,709
|
|
$
52,855
|
|
$
64,440
|
|
|
Gross
Profit
|
|
$
7,723
|
|
$
6,313
|
|
$
9,688
|
|
|
Operating
income
|
|
$
3,509
|
|
$
2,517
|
|
$
5,215
|
|
|
Operating
margin
|
|
6%
|
|
5%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
Unallocated Expenses
|
Gross
Profit
|
|
$
(21,734)
|
|
$
(19,435)
|
|
$
(21,521)
|
|
|
Operating
income
|
|
$
(28,070)
|
|
$
(25,455)
|
|
$
(31,832)
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
Revenue
|
|
$
594,893
|
|
$
470,420
|
|
$
574,197
|
|
|
Gross
Profit
|
|
$
123,303
|
|
$
98,801
|
|
$
130,746
|
|
|
Operating
income
|
|
$
75,987
|
|
$
61,067
|
|
$
82,468
|
|
|
Operating
margin
|
|
13%
|
|
13%
|
|
14%
|
|
|
|
|
|
|
|
|
|
SELECTED
CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Capital
expenditures, including acquisitions
|
|
$
92,677
|
|
$
109,492
|
|
$
308,998
|
|
Depreciation and amortization
|
|
$
40,588
|
|
$
35,437
|
|
$
38,479
|
|
|
|
|
|
|
|
|
|
The
above should be read in conjunction with the Company's latest
Annual Report on Form 10-K.
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
|
Mar.
31,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
|
|
(in
thousands)
|
Earnings
Before Interest, Taxes, Depreciation and
|
|
|
|
|
|
|
Amortization (EBITDA)
|
|
|
|
|
|
|
|
Net
Income
|
|
$
51,455
|
|
$
42,070
|
|
$
58,317
|
|
Depreciation and Amortization
|
|
40,588
|
|
35,437
|
|
38,479
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
92,043
|
|
77,507
|
|
96,796
|
|
|
|
|
|
|
|
|
|
Interest
(Income)/Expense, Net
|
|
201
|
|
(20)
|
|
(78)
|
|
Provision
for Income Taxes
|
|
23,662
|
|
19,346
|
|
26,880
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
115,906
|
|
$
96,833
|
|
$
123,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
Estimates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
265,000
|
|
$
290,000
|
|
|
|
Depreciation and Amortization
|
|
165,000
|
|
175,000
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
430,000
|
|
465,000
|
|
|
|
|
|
|
|
|
|
|
|
Interest
(Income)/Expense, Net
|
|
-
|
|
-
|
|
|
|
Provision
for Income Taxes
|
|
120,000
|
|
135,000
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
550,000
|
|
$
600,000
|
|
|
SOURCE Oceaneering International, Inc.